A look back at 2024 through the lens of tourism: The year that passed has been a challenging one, with regional conflict raising the questions about one of Egypt’s main sources of FX — tourism.

All these challenges led the government to revise downwards its tourism target — the government now aims to welcome 25 mn tourists annually by 2030, down from a previously-set goal of 30 mn tourists by 2028. Also, the government had expected to welcome 15.7 mn tourists during the current fiscal year, but most recent data see Egypt welcoming 15.3 mn tourists by the end of FY 2024-25, not too far off the initially set goal for the year, and still 5% above last year’s record.

Speaking of targets: To realize its ambitious tourism targets, the government plans to add some 240-250k rooms to existing hotel room capacity. That’s at least 20% more than the 200k hotel rooms that were initially planned.

A helping hand: To encourage investors to build more hotels and reach the targets set, the finance and tourism ministries last month launched a new EGP 50 bn subsidized loan program for the tourism sector. The program offers financing at 12% interest, providing tourism operators with extended support to expand facilities and accommodate an anticipated growth in visitor numbers — with a focus on key tourist destinations in Luxor, Aswan, Greater Cairo, the Red Sea, and South Sinai governorates. Eligible companies can access up to EGP 1 bn in financing —- rising to EGP 2 bn for related entities, over the course of one year.

More gov’t support in the works: The Madbouly government is looking into launching a new initiative to support investors looking to set up new hotels in the local market, Tourism Minister Sherif Fathy said during a presser earlier this month. The initiative is pending discussions with the Finance Ministry and the central bank, seeing as they will be providing the funds needed, he explained.

There are lots of strategic locations the government is prepping for tourism projects: The government is looking into launching four-to-five new investment zones along the Red Sea coast, hoping to create similar projects to the multi USD bn Ras El Hekma project that is expected to attract an additional 8 mn tourists every year once it is up and running. There are already plans to offer the Red Sea’s Ras Banas area to private sector players in a transaction similar to ADQ’s Ras El Hekma USD 35 bn agreement.

What about non-costal tourism? The Madbouly government is also working to overhaul other in-city locations to attract more tourism investments, such as the Grand Egyptian Museum (GEM) — which opened its doors for trial operations of its main galleries in October, and is expected to be officially open for visitors sometime in 2025. The museum is the centerpiece of the EGP 30 bn development of the Giza Plateau area — a project that has been long in development. Moreover, the Transport Ministry is working on a corridor that will link GEM to the Giza Plateau, creating a seamless connection between two of Egypt’s most iconic sites. Orascom Investment Holding said in early December it will bring its total investments in the plateau through subsidiary Orascom Pyramids Entertainment to EGP 1.5 bn by February 2025.

The hoteliers business fared well in 2024: The hospitality industry kicked off 2024 with an an agreement that saw ADQ snapping 40.5% of Icon — the hospitality arm of Talaat Moustafa Group (TMG), and the company that acquired a 39% stake in seven historical hotels under the state privatization program. We also saw a slew of transactions by regional and international companies to set up new hotels across Egypt.

A snapshot of what’s in the works: Egyptian hotelier Baron Hotels and Resorts pledged more than EGP 3 bn worth of investments in self-financed projects to add 2k rooms in Hurghada and Sharm El Sheikh over the next two years. Travco subsidiary Jaz Hotel Group plans to set up six new hotels next year, under a USD 215 mn investment plan. Egyptian b’naire Naguib Sawiris also plans to invest at least USD 150 mn to establish one or two hotels near the Pyramids and Sphinx International Airport. Meanwhile, hospitality giant Hilton is working on tripling its presence in the local market by opening 25 new hotels across the country — part of a larger goal for Hilton to have 40 hotels operating in Egypt over the coming years.

Airports up for grabs: The Madbouly government concluded that in order to realize its ambitious tourism targets, it had to upgrade its airports, prompting it to invite private sector players — including foreign companies — to take over the management of airports to improve services and increase revenues. The list of airports earmarked for the private management plan initially started with only five, but now includes all of Egypt’s airports after the government agreed last week with the International Finance Corporation to spearhead the airports privatization plan.

Domestic flights by foreign airlines? The ministries of tourism and aviation are in discussions over potentially allowing foreign airlines to operate domestic flights in Egypt, aiming to boost the number of domestic flights operated.

Yacht tourism also got some love: The government has been working to boost Egypt’s yacht tourism for years now. And over the past year, the Suez Canal Authority (SCA) rolled out fresh incentives and facilities for yachts passing through the waterway. The Madbouly government is also working to finalize a contract to develop Galala Marina — expected to become Egypt’s premier yacht destination in the years to come.

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